Welcome!

Microsoft Cloud Authors: Pat Romanski, Srinivasan Sundara Rajan, Glenn Rossman, Janakiram MSV, Steven Mandel

News Feed Item

Bioniche Life Sciences Inc. Reports Q1, Fiscal 2013 Results

-quarterly revenues consistent with last year; margin on animal health product sales improves to 54%-

(all figures are in Canadian dollars unless otherwise noted)

BELLEVILLE, ON, Nov. 7, 2012 /PRNewswire/ - Bioniche Life Sciences Inc. (TSX: BNC) (ASX: BNC), a research-based, technology-driven Canadian biopharmaceutical company, today announced financial results for the first quarter of its 2013 fiscal year (ended September 30, 2012).

"The Company continues to invest in several late-stage development projects and in facilities where commercial products will be made," said Mr. Graeme McRae, President & CEO of Bioniche Life Sciences Inc. "We are nearing commercialization of some important products in the next 12 to 18 months and this requires an intensive resource allocation. Once these products reach the marketplace, we expect the new revenues will neutralize the corporate burn rate."

Further to the Company's news release of Monday, November 5, 2012, the Company continues to discuss with its licensing partner, Endo Pharmaceuticals, potential next steps for the Urocidin™ clinical program following the discontinuation of the current Phase III clinical trial in non-muscle-invasive bladder cancer. Urocidin™ remains a valuable asset and the Company is committed to ensuring that this valuable product becomes commercialized.

Fiscal 2013 First Quarter Financial Results Highlights

Revenues from the sale of Animal Health products increased by $0.5 million in the quarter, offset by a decrease in collaborative research revenue of $0.6 million. Animal Health revenues out of Canada, which includes sales into South America, declined by 17% compared to the same quarter last year due to the timing of sales orders. Sales in the United States increased 30% over the same quarter last year primarily from the introduction of new products. Sales in Australia and Europe also saw modest increases. Consolidated revenues for the quarter were $6.7 million, as compared to $6.8 million in the same period in Fiscal 2012.

The cost of sales related to product sales in the Animal Health business unit has decreased by 2% in Q1, Fiscal 2013 from the same quarter in Fiscal 2012. This decrease is directly related to increased sales from new products. Gross margins were 54.2% in Q1, Fiscal 2013, compared to 49.8% in the first quarter of last year.

The Company generated Earnings (Loss) Before Interest, Taxes, Depreciation and Amortization (EBITDA) - before research and development expenses - of ($107,000) for Q1, Fiscal 2013, as compared to ($242,000) for the same period in Fiscal 2012.

Cash, cash equivalents and short-term investments amounted to $14.4 million at September 30, 2012, as compared to $9.6 million in the same period last year and $20.0 million at June 30, 2012. A further $14 million was available to the Company at September 30, 2012 through trade and other receivables and inventories. In the same period last year, $14.6 million was available through these sources.

At September 30, 2012, the Company's net working capital totalled $21.2M as compared to working capital of $27.5M at June 30, 2012, reflecting the decrease in cash primarily used to invest in late-stage development and commercialization activities.

The Company's cash flow used in operations for the quarter ended September 30, 2012 was $5.0 million, as compared to cash used in operations of $3.9 million in the same period in Fiscal 2012. As a result, the average monthly burn rate for Q1, Fiscal 2013 was $1.8 million, vs. $1.2 million for the same quarter in Fiscal 2012.

"The Company remains committed to reducing the average monthly burn rate progressively throughout the year as it completes the development and commercialization of several new products," said Mr. Brian Ford, Chief Financial Officer of Bioniche Life Sciences Inc. "The Company's goal is to neutralize its burn rate and develop sustainable cash flows in Fiscal 2014."

The value of the Company's Property, Plant and Equipment has increased to $40.2 million at September 30, 2012, compared to $40.1 million at June 30, 2011. This increase reflects an ongoing investment in the Animal Health and Food Safety Vaccine Manufacturing Centre at the Company's corporate headquarters in Belleville, Ontario. This facility is undergoing validation to meet global GMP production standards.

Administrative expenses were $2.3 million in Q1, Fiscal 2013, as compared to $2.5 million in the same quarter last year. Marketing, selling and distribution expenses were $1.8 million in Q1, Fiscal 2013, as compared to $1.8 million in the same quarter last year. The additional expenditure in this category is related to increased staffing to support the launch and distribution of several new Animal Health products.

Research and development (R&D) expenditures for Q1, Fiscal 2013 were $4.3 million, as compared to $4.8 million in the same quarter last year. R&D resources are focused on the advancement of certain development programs in Animal Health and Food Safety. Additionally, there is continued investment in the staffing and infrastructure associated with the GMP production of the Company's UrocidinTM bladder cancer treatment. Further, until such time as the Company's Vaccine Manufacturing Centre in Belleville is making commercial product, the carrying costs associated with this facility are also accounted for under R&D.

The Company incurred financial expenses of $1.5 million (including non-cash financial expenses of $737,000) during Q1, Fiscal 2013 as a result of its US$20 million debt financing with Capital Royalty Partners. This compares to financial expenses of $0.2 million in the same quarter of Fiscal 2012.

The basic and fully-diluted net loss per share for Q1, Fiscal 2013 is ($0.06), as compared to a net loss per share of ($0.04) in the same period last year. Total Common Shares outstanding at September 30, 2012 were 103,738,712, as compared to 102,375,477 at September 30, 2011.

The Company has incurred significant losses and has an accumulated deficit of $125.5 million as at September 30, 2012, including a current loss of $6.7 million for the first quarter of Fiscal 2013. The Company's committed cash obligations and expected level of expenditures for the next twelve months exceed its committed resources of funds and funds available as at September 30, 2012.

The Company expects to finance its future expenditures by obtaining additional financing and the exploration of new partnering agreements on technologies under development. If the Company is unable to accomplish either of these initiatives, which are outside of management's control, the Company will be required to curtail its development activities and operations.

More information on the Company's year-end financial results is provided in the Company's Q1, Fiscal 2013 Management's Discussion and Analysis dated November 7, 2012.

Annual and Special Meeting of Shareholders

The Company held its Annual and Special Meeting of Shareholders in Belleville, Ontario today. At the meeting, shareholders voted in favour of electing the following individuals as members of the Board of Directors:

-Dr. Stanley Alkemade
-Mr. Albert Beraldo
-Mr. Rod Budd
-Dr. Margaret Cunningham
-Dr. James Johnson
-Mr. Graeme McRae
-Mr. Nick Photiades
-Mr. James Rae
-Mr. Lyle Vanclief

Dr. Armen Aprikian remains an Observer on the Board.

The shareholders also voted in favour of the appointment Ernst & Young, LLP, Chartered Accountants, as auditors of the Corporation.

Further, the shareholders voted in favour of an increase in the maximum number of Common Shares available to be issued under the Group Registered Retirement Savings and Employee Savings Plan ("Savings Plans") to 10,000,000.

The shareholders voted in favour of an increase in the maximum number of Common Shares available to be issued to pay outside directors to 1,400,000.

The shareholders voted in favour of a new Shareholders' Rights Plan. The Plan was originally approved in 2006 by the Toronto Stock Exchange and the shareholders. As the Plan had expired, a new Plan had to be approved.

Finally, the shareholders voted in favour of re-approval of the Amended and Restated Stock Option Plan. This Plan was approved by the shareholders in 2009 and requires re-approval by the shareholders every three years. The Stock Option Plan is a means by which the Company can compensate eligible persons for their contributions to the performance of the Company.

Other Meeting Highlights

During the meeting, additional information was presented to shareholders, including the following highlights:

  1. The Animal Health business unit has an objective of reaching $60 million in product sales revenues in Fiscal 2016.
  2. The Company's Sin Susto™ canine calming product is expected to be launched in North America in January, 2013.
  3. The Company is talking with the University of Ottawa about potential human applications for Sin Susto™.
  4. The Company's Animal Health and Food Safety Vaccine Manufacturing Centre in Belleville, Ontario is expected to be fully validated to Good Manufacturing Practice (GMP) standards by the spring of 2013.
  5. The Company is seeking a distribution partner in Japan for Econiche®.
  6. The Company's second canine oncology product in development - Oncocidin™ - is expected to be launched in Q1, Fiscal 2014.
  7. The Company has filed new patents around Mycobacterial Cell Wall-DNA Complex (MCC) in October, 2011.
  8. A possible future indication for MCC is in human palliation following chemotherapy.
  9. The Company's R. equi vaccine for horses is undergoing proof of concept studies at the Gluck Equine Research Centre in Kentucky, where the protocol involves vaccinating mares to protect foals.

About Bioniche Life Sciences Inc.

Bioniche Life Sciences Inc. is a research-based, technology-driven Canadian biopharmaceutical company focused on the discovery, development, manufacturing, and marketing of proprietary and innovative products for human and animal health markets worldwide. The fully-integrated company employs more than 200 skilled personnel and has three operating divisions: Human Health, Animal Health, and Food Safety. The Company's primary goal is to develop and commercialize products that advance human or animal health and increase shareholder value.

For more information, please visit www.Bioniche.com.

Except for historical information, this news release may contain forward-looking statements that reflect the Company's current expectation regarding future events. These forward-looking statements involve risk and uncertainties, which may cause, but are not limited to, changing market conditions, the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process, and other risks detailed from time to time in the Company's ongoing quarterly and annual reporting.


Bioniche Life Sciences Inc.
Amalgamated under the laws of Ontario

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
[Unaudited - see going concern uncertainty]

As at

(thousands of Canadian dollars)
  September
30, 2012
$
June 30,
2012
$
ASSETS
Current
     
Cash and cash equivalents   14,409 20,020
Trade and other receivables   6,024 6,787
Inventories   7,960 7,776
Prepayments   1,065 1,081
    29,458 35,664
Non-current      
Property, plant and equipment   40,217 40,134
Intangible assets   5,009 5,206
Goodwill   456 456
Other non-current receivables   145 183
Deferred tax assets   375 509
Total assets   75,660 82,152
       
LIABILITIES AND SHAREHOLDERS' EQUITY      
Current      
Trade and other payables   6,573 6,713
Income taxes payable   88 94
Current portion of long-term debt   1,015 997
Current portion of repayable government assistance   616 366
    8,292 8,170
Non-current      
Long-term debt   24,842 25,438
Repayable government assistance   31,273 30,921
Employee benefit liability   1,906 1,875
    66,313 66,404
Shareholders' equity      
Share capital   126,425 126,354
Other paid-in capital   9,429 9,327
Deficit   (125,478) (118,807)
Foreign currency translation reserve   (1,029) (1,126)
Total shareholders' equity   9,347 15,748
Total liabilities and shareholders' equity   75,660 82,152

Bioniche Life Sciences Inc. 

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
[Unaudited - see going concern uncertainty]

(thousands of Canadian
dollars)
Common
Shares
$
  Preferred
Shares
Series I
$
  Total Share
Capital
$
  Other
paid-in
Capital
$
  Deficit
$
  Foreign
currency
translation
reserve
$
  Total
$
Balance, June 30, 2012 126,354     126,354   9,327   (118,807)   (1,126)   15,748
Net loss for the period         (6,671)     (6,671)
Exchange difference on translation of foreign operations           97   97
Issued under employee share ownership plan 70     70         70
Options exercised 1     1         1
Fair value of stock options vested       102       102
Balance, September 30, 2012 126,425     126,425   9,429   (125,478)   (1,029)   9,347
                           
Balance, June 30, 2011 125,469   161   125,630   8,771   (94,619)   (1,174)   38,608
Net loss for the period         (4,509)     (4,509)
Exchange difference on translation of foreign operations           267   267
Issued under employee share ownership plan 209     209         209
Options issued to a consultant       1       1
Fair value of stock options vested       213       213
Share redemption   (161)   (161)   5       (156)
Balance, September 30, 2011 125,678     125,678   8,990   (99,128)   (907)   34,633

Bioniche Life Sciences Inc.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
[unaudited - see going concern uncertainty]

For the three months ended September 30

(thousands of Canadian dollars, except share and per
share amounts)
  2012
$
2011
$
       
REVENUES      
Product   6,595 6,123
Research collaborations   74 693
    6,669 6,816
EXPENSES      
Cost of sales   3,021 3,073
Administration   2,338 2,489
Marketing and selling   1,827 1,771
Financial expenses   1,518 227
Foreign exchange loss (gain)   289 (433)
    8,993 7,127
Loss before research and development expenses and income taxes   (2,324) (311)
Research and development expenses   4,316 4,820
Less: government assistance   (98) (199)
Loss before income taxes   (6,542) (4,932)
Income tax expense (recovery)   129 (421)
Net loss for the period   (6,671) (4,511)
OTHER COMPREHENSIVE INCOME
Exchange difference on translation of foreign operations
  97 267
Total comprehensive loss for the period   (6,574) (4,244)
Basic and diluted net loss per Share   (0.06) (0.04)
Weighted-average number of Common Shares outstanding   103,734,182 102,274,109

Bioniche Life Sciences Inc.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
[unaudited - see going concern uncertainty]

For the three months ended September 30

(thousands of Canadian dollars)
  2012
$
2011
$
OPERATING ACTIVITIES      
Net loss for the period   (6,671) (4,511)
Items not affecting cash and other reconciling items:      
  Depreciation of property, plant and equipment   367 355
  Amortization of intangible assets   444 243
  Unrealized foreign exchange gain   (466) (99)
  Finance expense on government incentives, long-term debt
   and repayable government assistance 
  737 217
  Stock-based compensation expense   102 214
  Employee share ownership plan   208
  Employee future benefit   31 23
  Unrealized loss on other current financial assets   20
  Deemed government assistance   (7)
  Deferred income taxes   129 (361)
  Other   1
    (5,327) (3,697)
Net change in non-cash working capital balances   345 (237)
Cash used in operating activities   (4,982) (3,934)
INVESTING ACTIVITIES      
Purchases of property, plant and equipment   (124) (2,766)
Proceeds on disposal of property, plant and equipment   2
Purchases of intangible assets   (247) (3)
Cash used in investing activities   (371) (2,767)
FINANCING ACTIVITIES      
Proceeds from repayable government assistance   1,230
Proceeds on exercise of stock options   1
Redemption of shares   (156)
Repayment of repayable government assistance   (35)
Repayment of finance lease obligations   (108) (118)
Repayment of long-term debt   (116) (29)
Cash provided by financing activities   (258) 927
Net decrease in cash and cash equivalents during the period   (5,611) (5,774)
Cash and cash equivalents, beginning of period   20,020 15,353
Cash and cash equivalents, end of period   14,409 9,579

 

SOURCE Bioniche Life Sciences Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
WebRTC adoption has generated a wave of creative uses of communications and collaboration through websites, sales apps, customer care and business applications. As WebRTC has become more mainstream it has evolved to use cases beyond the original peer-to-peer case, which has led to a repeating requirement for interoperability with existing infrastructures. In his session at @ThingsExpo, Graham Holt, Executive Vice President of Daitan Group, will cover implementation examples that have enabled ea...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Technology vendors and analysts are eager to paint a rosy picture of how wonderful IoT is and why your deployment will be great with the use of their products and services. While it is easy to showcase successful IoT solutions, identifying IoT systems that missed the mark or failed can often provide more in the way of key lessons learned. In his session at @ThingsExpo, Peter Vanderminden, Principal Industry Analyst for IoT & Digital Supply Chain to Flatiron Strategies, will focus on how IoT de...
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
SYS-CON Events announced today that China Unicom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE F...
SYS-CON Events announced today that Roundee / LinearHub will exhibit at the WebRTC Summit at @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LinearHub provides Roundee Service, a smart platform for enterprise video conferencing with enhanced features such as automatic recording and transcription service. Slack users can integrate Roundee to their team via Slack’s App Directory, and '/roundee' command lets your video conference ...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.